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MGMT 330 ORGANIZATIONAL BEHAVIOUR 1 CHAPTER 1 THE MEANING AND SCOPE OF ORGANIZATIONAL BEHAVIOUR 2 WHAT IS OB?

A study of human behaviour, attitudes and performance in organization. Interaction between individual and organization An interdisciplinary drawing on concepts from social and clinical psychology, sociology, cultural anthropology, industrial engineering and organizational psychology. 3 UNIT OF ANALYSIS Individual Group

Organization 4 RELATIONSHIP BETWEEN OB AND MANAGEMENT Organizational behaviour: Interaction between individual and organization Management: A critical element in the economic growth of the country

Essential in all organized effort The dynamic, life giving element in every organization 5 WHY STUDY OB? Cherrington identified three main objectives in organizational behaviour: Explain Clarify Control

6 CHAPTER 2 THE BEGINNINGS OF STUDIES 7 CLASSICAL SCHOOL OF MANAGEMENT Consists of three streams of thought: Bureaucratic organization Max Webber

Administrative management How organizations should be managed and structured Henri Fayol and Chester Barnard Scientific management Application of scientific methods to increase individual workers productivity Frederick Winslow Taylor, Henri Gantt and Frank and Lillian Gilbreth 8 HAWTHORNE STUDIES

The Test Room Studies Interviewing Studies Observational Studies 9 HUMAN RELATIONS SCHOOL Abraham Maslow Motivation theory Human needs Human behaviour Hierarchy of needs

Douglas Mc Gregor Theory X and Y 10 EARLY BEHAVIOUR THEORY Mary Parker Follett Management is getting things done with and through other people Sharing of empowerment through working together between employer and employee

Conflict solution through integration Hugo Munsterberg Implement psychology approach in organizations problem Psychology study is very relevant in organizational behaviour 11 CHALLENGES IN ORGANIZATIONAL BEHAVIOUR Business and industry towards globalization

and international Quality is more important Society is concern on management ethics Increase of diversity among employees 12 CHAPTER 3 BEHAVIOURAL THEORIES OF ORGANIZATION 13

DISCIPLINE OF ORGANIZATIONAL BEHAVIOUR Psychology Sociology Political science Economy Ecology 14 PSYCHOLOGICAL PERSPECTIVE Psychology discipline is the most influent

discipline in an organization Focus on understanding individuals behaviour Biographic Talent Personality Learning Motivation 15 SOCIOLOGICAL PERSPECTIVE Focus on group behaviour Conflict and counseling

Communication 16 POLITICAL PERSPECTIVE Empowerment and authority are part of political discipline Distribution of power Direction of attempts to influence: Upward Downward Laterally

17 ECONOMICS PERSPECTIVE Economics perspective helps managers to make decision Techniques on problem solving Decision making: Individual Group 18 ECOLOGICAL PERSPECTIVE

Organization as a sub-system of society Environmental factors: Suppliers Distributors Customers Competitors 19 CHAPTER 4 INDIVIDUAL BEHAVIOUR IN ORGANIZATION

20 ATTITUDES Reflects an individuals background and experiences Components of attitudes: Affective component Cognitive component Behavioural component 21

PERCEPTION The process by which people select, organize, interpret and respond to information form the world around them Basic element in the perceptual process: Environmental stimuli Observation Perceptual selection Perceptual organization Interpretation Response

22 PERCEPTUAL PROCESS The perceptual process is a sequence of steps that begins with the environment and leads to our perception of a stimulus and an action in response to the stimulus. The process is continual but we do not spend time thinking about the actual process that occurs when we perceive many stimuli that surround us at any moment

23 ENVIRONMENTAL STIMULI Everything in our environment that has the potential to be perceived Includes anything that can be seen, touched, tasted, smelled, heard, movements of the arms and legs or change in position of the body in relation to objects in the environment Objects and environment

people in the immediate 24 OBSERVATION Taste Smell

Hearing Sight Touch 25 PERCEPTUAL SELECTION Depends on several factors: External factors:

Size Intensity Contrast Motion Repetition Novelty and familiarity Internal factors: Personality

Learning Motivation 26 PERCEPTUAL ORGANIZATION Perceptual organization Continuity Closure Proximity Similarity 27

INTERPRETATION Perceptual errors Perceptual defense Stereotyping Halo effect Projection Expectancy effects Attributions Internal versus external causes Causes for success and failure

28 RESPONSE Convert Attitudes Motivations Feelings Overt Behaviour 29

COGNITIVE DISSONANCE Being used to describe the feeling of discomfort that results from holding two conflicting beliefs Happens when an individuals behaviour conflicts with beliefs that are integral to his or her self-identity How to reduce? Focus Reduce

Change 30 PERSONALITY TRAITS/ TYPES Heredity Experience Environment Situation 31

PERSONALITY TRAITS THAT INFLUENCE ORGANIZATIONAL BEHAVIOUR Locus of control Goal orientation Authoritarianism Machiavellianism Self-esteem 32 CHAPTER 5 GROUP BEHAVIOUR IN ORGANIZATION

33 WHAT IS A GROUP? Members who share goals, communicate with one another over a period of time Group classification: Formal group Informal group 34

FORMAL AND INFORMAL GROUPS Formal groups Functional group Task group: Permanent task group Temporary task group Informal groups Interest group Friendship group 35

WHY PEOPLE JOIN GROUPS? Generating ideas Networking Task completion Accuracy Speed Creativity Cost 36 GROUP NORMS AND DYNAMICS

Behavioural norms Rules of behavioural that are shared by members Main function is to regulate and standardize the behaviours viewed as important to members Performance norms Exists when three criteria have been met: Standard of appropriate behaviour Members must agree on the standard Members must aware that group support the standard 37

ROLE AND ROLE EXPECTATIONS Role Cluster of tasks and behaviours that a person should perform Role expectation What are you expected to do depending on what role you obtain Example If you are a police officer, then as your role as a police officer you would expected to protect the

country 38 GROUP MEMBER ROLES Task-oriented role Involves facilitating and coordinating work-related decision making Initiating, seeking information, giving information, coordinating and evaluating Relation-oriented role Involves building team-centered feelings and social

interactions Encouraging members, harmonizing, encouraging participation, expressing, following 39 GROUP MEMBER ROLES Self-oriented role Involves the persons self-centered behaviours that are at the expense of the team or group Blocking progress, seeking

recognition, dominating, avoiding 40 INFORMAL ORGANIZATION AND ITS IMPACT Informal organization is defined by the patterns, behaviours and interactions that stem from personal rather than official relationship Emphasis is on people and their relationships Workers may create an informal group to go

bowling, form a union, discuss work challenges 41 EFFECT OF DIVERSITY ON GROUP PERFORMANCE Poses a threat to the organizations effective functioning Expressed discomfort with the dominant groups values Members of the group want to become like the dominant Positive multiculturalism

42 CHAPTER 6 ORGANIZATIONAL STRUCTURE AND ITS IMPACT ON OB 43 WHAT IS ORGANIZATION? Organizations are formed so that people who share a common set of values or interest can

work together towards achieving common objective Elements of organization: People Objectives Structure 44 WHAT IS ORGANIZATION? Amitai Etzioni Organization is a social unit or human grouping, structured for the purpose of attaining specific

goals Stoner Organization is a pattern of relationships through which people under direction of managers pursue their common goals 45 WHAT IS ORGANIZATION? Vision Mission Strategy

Planning Short term Long term 46 ORGANIZATIONAL STRUCTURE Distribution and segregation of work Organizational chart Key factors in organizational structure Environmental factors Strategic factors Technological factors

Integrative framework 47 ORGANIZATIONAL STRUCTURE Environmental factors Suppliers Distributors Competitors Customers Strategic factors Low cost

Differentiation Focused 48 ORGANIZATIONAL STRUCTURE Technological factors Technology Task interdependence Pooled interdependence Sequential interdependence Reciprocal interdependence

49 MECHANISTIC STRUCTURE Individuals and functions will behave in predictable ways Characteristic of mechanistic structure Clear, well-defined hierarchies of command Defined jobs, technologies and processes Centralization of decision making Specialization, standardization and formalization 50

IMPACT OF MECHANISTIC STRUCTURE ON ORGANIZATIONAL BEHAVIOUR Tightly control the behaviour of employees Employees follow extensive impersonal rules and procedures in making decisions Each employees job involves specified area of expertise Employees are appointed and not elected 51 ORGANIC STRUCTURE Characteristic of organic structure

Low to moderate use of formal rules and regulations Decentralized and shared decision making Broadly defined job responsibilities Flexible authority structure with fewer levels in the hierarchy Job specialization is low 52 IMPACT OF ORGANIC STRUCTURE ON ORGANIZATIONAL BEHAVIOUR

Emphasizes employee competence rather than employees formal position in the hierarchy Flexible hierarchy and empowers employees to make decision 53 NEW FORMS OF ORGANIZATION Functional design Involves creation of positions, teams and

departments on the basis of specialized activities Place design Involves establishing an organizations primary units geographically Product design Involves the establishment of self-contained units, each capable of developing, producing, marketing and distributing its own goods or services 54

NEW FORMS OF ORGANIZATION Multidivisional design Tasks are organized by division on the basis of product/geographic markets Multinational design Produce and sell products/services in two or more countries Network design

Focuses on sharing authority, responsibility and resources Virtual design Coordinate and link people from many different locations 55 CHAPTER 7 UNDERSTANDING WORK TEAMS 56

STAGES OF TEAM DEVELOPMENT Forming stage Storming stage Norming stage Performing stage Adjourning stage 57 FORMING STAGE Focus on: Defining or understanding goals

Developing procedures Involves getting acquainted and understanding leadership and other member roles Deal with members feelings 58 STORMING STAGE Manage conflict among members This stage may be shortened or can be avoided if members use a team-building process from the beginning

Involves development of decision-making, interpersonal and technical capabilities 59 NORMING STAGE Sharing of information, different options acceptance of

Team members set rules by which the team will operate Developing of cooperation and sense of shared responsibility 60 PERFORMING STAGE Team members show how effectively and efficiently they can achieve results together The roles of individual members are accepted and understood At this stage, teams may differ:

Continue to learn and develop from their experiences May perform only the level needed for survival 61 ADJOURNING STAGE Termination of work behaviours disengagement from social behaviours and Normally happens when team has achieved

their goals A problem-solving or a cross-functional team will investigate and report on specific issue within 6 months 62 DIFFERENCE BETWEEN GROUPS AND TEAMS A group is two or more individuals who come into personal and meaningful contact on a continuing basis Example: departments, divisions and business

units Teams are much smaller than organizational groups 63 TYPES OF TEAMS Functional teams Problem-solving teams Cross-functional teams Self-managed teams Virtual teams 64

FUNCTIONAL TEAMS Include individuals who work together daily on similar tasks Exist within functional departments: Marketing Production Finance Human resource 65

PROBLEM-SOLVING TEAMS Focus on specific issues in their areas of responsibility, develop potential solutions and empowered to take action within defined limits Members are employees from a specific department who meet at least once or twice a week for an hour or two 66 CROSS-FUNCTIONAL TEAMS

Bring together people from various work areas to identify and solve mutual problems Effective in situations that require innovation, speed and focus on responding to customer needs Members from several specialties or functions and deal with problems 67 SELF-MANAGED TEAMS Consist of employees who must work together effectively daily to manufacture an entire

product or service to customers The teams are empowered (potency, meaningfulness, autonomy and impact) 68 VIRTUAL TEAMS A group of individuals who collaborate through various information technologies on one or more projects while being at two or more locations Work primarily across distance, time and

organizational boundaries 69 BUILDING HIGH-PERFORMANCE TEAMS

Setting clear team goals Have a plan for improvement Have clear roles Clear communication Team members behaviour Proper procedure for decision making Equal involvement Set guidelines for group norms Understand the group process

70 WHY TEAMS FAIL? Absence of clear goals Poor decision making Lack of mutual accountability Lots of talking but little action Closed minds 71 CHAPTER 8 LEADERSHIP AS INFLUENCING THE

BEHAVIOUR OF OTHERS 72 MANAGERS AND LEADERS Managers: Direct the work of others and is responsible for the results Effective managers bring a degree of order and consistency to the work for their employees Leaders:

Exhibits the attributes of leadership (ideas, vision, values, influencing others and making decisions) Do no perform management functions (planning, organizing, leading and controling) 73 TYPES OF LEADERS Transactional leaders Involves motivating and directing followers through contingent reward-based practices Three components to achieve performance goals Contingent rewards

Active management by exception Passive management by exception Charismatic leaders Emphasizes shared vision and values Promotes shared identity Exhibits desired behaviours Reflects strength 74 TYPES OF LEADERS

Transformational leaders Anticipating future trends Inspiring followers to understand and embrace a new vision of possibilities Developing others to be leaders or better leaders Building organization or group into a community of challenged and rewarded learners 75 LEADERSHIP STYLES AND THEIR IMPACT ON ORGANIZATIONAL BEHAVIOUR

Hersey and Blanchards Situational Model Based on the amount of relationship and task behaviour that a leader provides to subordinates in a situation The amount of relationship and task behaviour is based on the readiness of the followers to perform needed tasks 76 HERSEY AND BLANCHARDS SITUATIONAL MODEL

Relationship Behaviour High Participating Style Selling Style Delegating Style

Telling Style Low Low High Task Behaviour 77 LEADERSHIP STYLES AND THEIR IMPACT ON ORGANIZATIONAL BEHAVIOUR

Vroom-Jago Leadership Model Developed by Victor Vroom, in collaboration with Phillip Yetton and later Arthur Jago Focuses on the leadership role in decision-making situations Prescribers a leaders choices among five leadership styles based on seven situational factors, recognizing the time requirements and costs associated with each style 78 VROOM-JAGO LEADERSHIP MODEL

79 LEADERSHIP STYLES AND THEIR IMPACT ON ORGANIZATIONAL BEHAVIOUR Theory X and Theory Y Developed by Douglas McGregor in 1957 Theory X is a composite of propositions and underlying beliefs that take a command and control view of management based on a negative view of human nature Theory Y is a composite of propositions and beliefs

that take a leadership and empowering view of management based on a positive view of human nature 80 LEADERSHIP STYLES AND THEIR IMPACT ON ORGANIZATIONAL BEHAVIOUR Managerial Grid Developed by Robert Blake and Jane Mouton Identifies five leadership styles that combine different degrees of concern for production and concern for people

Impoverished style Country club Produce or perish Middle of the road Team 81

BLAKE MOUTON MANAGERIAL GRID 82 LEADERSHIP STYLES AND THEIR IMPACT ON ORGANIZATIONAL BEHAVIOUR LEADERSHIP STYLES AND THEIR IMPACT ON ORGANIZATIONAL BEHAVIOUR BEHAVIOURAL APPROACH TO

LEADERSHIP AND AUTHORITY Visionary Trustworthy Considerate Confident Charismatic and ethical 85 CHANGING LEADERSHIP REQUIREMENTS Low level of anxiety Emotional stability

Action orientation Confidence Openness Risk tolerance 86 CHAPTER 9 COMMUNICATION AS THE LIFE BLOOD OF THE ORGANIZATION

87 WHAT IS COMMUNICATION? Exchange of information and ideas to create understanding between two parties Not limited to only verbal communication 88 IMPORTANCE OF COMMUNICATION TO ORGANIZATION Promotes motivation

Source of information Altering individuals attitudes Helps in socializing Controlling process 89 COMMUNICATION FLOWS IN ORGANIZATION Downward communication Upward communication Horizontal communication External networking

90 COMMUNICATION PROCESS Sender (encoder) Sender is the source of information and the initiator of the communication process Encoding is the process of translating thoughts or feelings into a medium (writing, visual or spoken) that conveys the meaning intended Five principles of communication:

Relevancy Simplicity Organization Repetition Focus 91

COMMUNICATION PROCESS Receiver (decoder) Receiver is the person who receives and decodes the senders message Decoding is translating messages into a form that has meaning to the receiver 92 COMMUNICATION PROCESS

Sender has an idea Sender encodes the idea Sender transmits the message to the sender Receiver gets the message Receiver decodes the message Receiver sends feedback

Noise 93 TYPES OF COMMUNICATION Interpersonal Formal and informal Internal and external Non-verbal Active listening 94

GRAPEVINE Organizations informal communication system Main features: Exist in every organization Difficult to eliminate or control Spontaneous in nature Travels very fast Types of chains Single-strand chain Cluster chain Gossip chain

95 COMMUNICATIONS NETWORKS AND THEIR EFFECTIVENESS Star network Y network Chain network Circle network All-channel network 96 COMMUNICATIONS NETWORKS AND

THEIR EFFECTIVENESS Factor Degree of centralization Leadership predictability Average group satisfaction Range in individual member

satisfaction Star Very high Very high TYPE OF COMMUNICATION NETWORK Y Chain Circle

All-Channel High Moderate Low Very low High Moderate

Low Very low Low Low Moderate Moderate High

High Moderate Low High Very low 97

COMMON BARRIERS TO EFFECTIVE COMMUNICATION

Noise Semantics Language routines Lying and distortion Perceptual differences Language differences Filtering of information Poor listening Information overload 98 CROSS-CULTURAL COMMUNICATION

Open communication Dialogue Crisis communication Feedback 99 HOW TO IMPROVE COMMUNICATION Understand the communication process Able to talk and listen Respect the receiver Establish rapport

100 CHAPTER 10 UNDERSTANDING DECISION-MAKING BEHAVIOUR 101 DECISION-MAKING (HEART OF MANAGEMENT) Conscious process of making choices among one or more alternatives for getting the desired

outcome Includes defining problems, gathering information, generating alternatives and choosing a course of action 102 RATIONAL DECISION-MAKING PROCESS Identify the problem or opportunity

Think of alternative solutions Evaluate alternatives and select solution Implement and evaluate solution chosen 103 NON-RATIONAL DECISION-MAKING PROCESS Problem not clearly defined Knowledge is limited to possible alternatives Choice of a satisfying alternative Managerial action

104 LIMITS TO RATIONALITY Satisficing Limited search Inadequate information and control 105 PARTICIPATION IN DECISION-MAKING Known as participative management Lighten the burden of the manager

Makes the employees feel accepted and appreciated Will increase performance motivation, innovation and 106

PARTICIPATION IN DECISION-MAKING Factors that can help participative management: Top management is continually involved Middle and supervisory managers are supportive Employees trust managers Employees are ready Employees do not work in interdependent jobs Participative management is implemented with TQM 107 BUILDING DECISION-MAKING SKILLS

Establish your objective Identify alternatives Explore alternatives Choose Check your decision 108 CHAPTER 11 MOTIVATION PEOPLE FOR INCREASED PRODUCTIVITY 109

WHY MOTIVATE? Motivation is a psychological state that exist whenever internal and / or external forces stimulate, direct or maintain behaviours By understanding employee motivation, managers can increase productive behaviours, enables managers to decrease disruptive behaviours such as tardiness, theft and loafing Motivating employees are important to ensure a productive and harmonious work environment Can affect organizational climate

110 HOW TO MOTIVATE? Through job design Motivator factors Hygiene factors Through performance expectations Expectancy model Through equity

111 STICK AND CARROT APPROACH STICK AND CARROT APPROACH Idiom that refers to a policy of offering a combination of rewards and punishment to induce behaviour Sometimes it takes both a carrot (goal) and a stick (motivator) to overcome procrastination and get the job done Most people, rewards work better than

penalties 113 MANIPULATING WORKERS Most managers engage in some form of manipulation to get employees to do their best An employer may use inappropriate manipulation to coerce an employee into doing

something he doesnt want to do by threatening or implying some manner of punishment Example: threats, fear, bribery, pressure, deceit, charm 114 EXTRINSIC MOTIVATORS Factors external to the job Includes company policy and administration, technical supervision, salary, fringe benefits, working conditions and interpersonal relations These factors are associated with an individuals

negative feelings about job and are related to the environment in which the job is performed 115 INTRINSIC MOTIVATORS Directly related to the job and are largely internal to the individual Includes the work itself, advancement and responsibility recognition,

These positive feelings are associated with the individuals experiences of achievement, recognition and responsibility 116 WORK DESIGN Specification of contents, methods and relationship of jobs in order to satisfy technology, social, organizational and personal requirement of job holders. Example: Job enlargement

Job enrichment Team management 117 REWARDS SYSTEM The ability of rewards to motivate individuals or team depends on six factors: Availability Timeliness Performance contingency Durability Equity

Visibility 118 MANAGERS PERCEPTION (THEORY X AND THEORY Y) Theory X managers believe employees Theory Y managers believe employees Need to be controlled Dont like work

Need to be pushed to be more productive Need incentive schemes Have to be directed to do things that they dont enjoy Want to be involved Can think for themselves and make decisions Share ownership of tasks Will find word more rewarding

if given responsibility and a variety of tasks Have good ideas Can engage in some level of self-management 119 SATISFIER AND DISSTISFIER Herzbergs Two-Factor Theory Relationship between job satisfaction and

motivation is a complicated one He discovered that the presence of a particular job characteristic, such as responsibility might increase job satisfaction Lack of responsibility didnt necessarily produce dissatisfaction Hygiene factors Motivator factors 120 MASLOWS HIERARCHY OF NEEDS

Abraham H. Maslow suggested that people have a complex set of exceptionally strong needs, which can be arranged in a hierarchy Five types of needs: Physiological Security Affiliation Esteem Self-actualization 121 EXPECTANCY THEORY

Work effort is directed toward behaviour that is believed to produce desired outcomes Effort is employees actual exertion of energy and motivation Three concepts of effort level: Expectancy Instrumentality Valence 122 CHAPTER 12 UNDERSTANDING ORGANIZATIONAL

CONFLICT AND POLITICS 123 ORGANIZATIONAL CONFLICT Conflict refers to a process in which one party perceives that its interests are being opposed or negatively affected by another party Four levels of conflict: Intrapersonal Interpersonal Intragroup

Intergroup 124 ORGANIZATIONAL POLITICS When employees are in group, there will be an individual who will practice power to influence others in the group Influence tactics to gain power that others perceive to be self-serving behaviour to gain self-interests Can be minimized by providing clear rules for resource allocation

125 WHY CONTROL ORGANIZATIONAL CONFLICT AND POLITICS? Organizational control comprises formal policies, rules, procedures and records for preventing or correcting deviations form plans and for achieving desired goals Power in conflict management

Reward power Coercive power Legitimate power Information power Expert power Referent power Charismatic power

126 INSTRUMENTS OF CONTROL Preventive Control Mechanisms intended to reduce errors and thereby minimize the need for corrective action Corrective Control Mechanisms intended to reduce or eliminate unwanted behaviours or results and thereby achieve conformity with the organizations regulations and

standards 127 CHAPTER 13 ORGANIZATIONAL RESISTANCE TO CHANGE 128 NEED FOR ORGANIZATIONAL CHANGE Organizational

change refers to any transformation in the design or functioning of an organization Degree of change Radical change Occurs when organizations make major innovations in the ways they do business Incremental change

An ongoing process of evolution over time, during which many small adjustments occur routinely 129 NEED FOR ORGANIZATIONAL CHANGE Timing of change Reactive change Occurs when an organization is forced to change in response to some event in the external or internal environment Anticipatory change

Occurs when managers make organizational modifications based on forecasts of upcoming events or early in the cycle of a new trend 130 CHANGE PROCESS

Assess the environment Determine the performance gap Diagnose organizational problems Articulate and communicate a vision for the future Develop and implement an action plan Anticipate resistance and take action to reduce it The monitor changes 131 RESISTANCE OF CHANGE

Individual resistance Perceptions Personality Habit Threats to power and influence Fear of the unknown Economic reasons 132 RESISTANCE OF CHANGE Organizational resistance

Organization design Organizational culture Resource limitations Fixed investments Inter-organizational agreements 133 MAKING CHANGES IN THE ORGANIZATION

Individuals Teams Leadership Organizational systems Reward systems Organization design

Culture 134 ORGANIZATIONAL DEVELOPMENT Management of change and development of organization Comprehensive approach to planned change that is aimed at improving the overall effectiveness of organization Application of behavioural science knowledge in a long range effort

135 ORGANIZATIONAL DEVELOPMENT Four characteristics: Profound change Value loaded Diagnosis cycle Process oriented 136 CHAPTER 14

IMPACT OF CHANGING ENVIRONMENT ON ORGANIZATIONAL BEHAVIOUR 137 IMPORTANCE OF CULTURE Culture is the unique pattern of shared assumptions, values and norms that shape the socialization, symbols, language, narratives and practices of a group of people Elements of a culture

Assumptions Values and norms Socialization Symbols Language Narratives Practices 138 IMPACT OF TECHNOLOGY AND INFORMATION AGE

Technological change Involves incremental adjustments or radical innovations that affect work-flows, production methods, materials and information system Information technology Comprises complex networks of computers, telecommunications systems and remote-controlled devices 139 INCREASED CONCERN WITH QUALITY

Quality control process Inputs Transformation operations Outputs Importance of quality Positive company image Lower costs and higher market share Decreased liability 140 ENVIRONMENT OF UNCERTAINTY

Uncertainty avoidance is the extent to which members of a culture rely on social norms, procedures and organizations to avoid ambiguity, unpredictability and risk With high uncertainty avoidance, individuals seek orderliness, consistency, structure, formalized procedures and laws to cover situations in their daily lives 141 IMPORTANCE OF ETHICS AND SOCIAL RESPONSIBILITY

Ethics is a set of values and rules that define right and wrong conduct These values and rules indicate when behaviour is acceptable and when it is unacceptable Four basic forces that influence the ethical conduct of individuals and organizations Cultural forces, legal and regulatory organizational forces, individual forces forces, 142

IMPORTANCE OF ETHICS AND SOCIAL RESPONSIBILITY Social responsibility holds that managers and other employees have obligations to identifiable groups Reasons for embracing social responsibility: Enlightened self-interest Sound investment Interference avoidance 143

MANAGING DIVERSITY Categories of diversity Primary categories Secondary categories Primary categories Age Race Ethnicity Gender Physical abilities and qualities Sexual orientation

144 MANAGING DIVERSITY Secondary categories Education Work experience Income Marital status Religious beliefs Geographic location Parental status Personal style

145 CHAPTER 15 MANAGING INDIVIDUAL STRESS 146 NATURE OF STRESS Stress is the excitement, feeling of anxiety and physical tension Stressor is the physical or psychological

demands from the environment that cause stress Stressor create stress or potential for stress when an individual perceives them as representing a demand that may exceed that persons ability to respond 147 PERSONALITY AND STRESS Many personality traits are related to stress Example: Individuals with low self-esteem is more likely to

experience stress in demanding work situations than is a person with high self-esteem Individuals with high internal locus of control may take more effective action, more quickly in coping with a sudden emergency than might individuals with high external locus of control 148 SOURCES OF STRESS Workload Job conditions Role conflict and ambiguity

Career development Interpersonal relations 149 EFFECTS OF STRESS Physiological effects of stress Emotional effects of stress Behavioural effects of stress 150 MANAGING STRESS

Individual initiatives Control the sources of stress Be able to cope with stress Organizational initiatives Reducing work stressors Modifying behaviours Creating wellness programs 151 CHAPTER 16

CULTIVATING ORGANIZATIONAL CULTURE 152 DYNAMICS OF ORGANIZATIONAL CULTURE Organizational culture: - represents a complex pattern of beliefs, expectations, ideas, values, attitudes and behaviors shared by members of organization - includes:

- routine ways of communicating - norms shared by individuals and teams 153 DYNAMICS OF ORGANIZATIONAL CULTURE Organizational culture: - includes: - dominant values held by organization - philosophy that guides management - rules for getting along in organization

- feeling in the organization 154 HOW CULTURES EMERGE Top management Agrees on shared assumptions of human behaviour Develops a shared vision of cultural values Behaviours Employees behave in ways that are consistent with shared values and assumptions

155 HOW CULTURES EMERGE Results Financial performance Market share Employee commitment Culture Strong culture emerges Traditions are maintained

Socialization practices for new employees 156 TYPES OF ORGANIZATIONAL CULTURE Bureaucratic culture Clan culture Entrepreneurial culture Market culture 157 BUREAUCRATIC CULTURE Values formality, rules, standard operating

procedures and hierarchical coordination Its members highly value standardized goods and customer service Managers view their roles as being good coordinators, organizers and enforces of written rules and standards 158 CLAN CULTURE Tradition, loyalty, personal commitment, extensive socialization,

teamwork, selfmanagement and social influence Its members recognize an obligation beyond the simple exchange of labour for a salary Members have strong sense of identification and recognize their common fate in organization 159 ENTREPRENEURIAL CULTURE High levels of risk taking, dynamism and creativity Commitment to experimentation, innovation and being on the leading edge

Not only quickly react to changes in the environment but it creates change Provide new and unique products and rapid growth 160 MARKET CULTURE Achievement of measurable and demanding goals, especially those that are financial and market-based (sales growth, profitability and market share) Hard-driving competitiveness and a profit

orientation prevail throughout the organization Relationship between organization is contractual individual and 161 ETHICAL BEHAVIOUR AND ORGANIZATIONAL CULTURE

Impact of culture Organizational culture involves a complex interplay of formal and informal systems that may support either ethical or unethical behaviour. An important concept linking organizational culture to ethical behaviour is principled organizational dissent, by which individuals in an organization protest, on ethical grounds, some practice or policy 162 ETHICAL BEHAVIOUR AND

ORGANIZATIONAL CULTURE Whistle-blowing Disclosure by current of former employees of illegal, immoral or illegitimate organizational practices to people or organizations that may be able to change the practice The whistle-blower lacks the power to change the undesirable practice directly and so appeals to other either inside or outside the organization 163

FOSTERING CULTURAL DIVERSITY Challenges Characteristics of effective diversity culture Managers and employees must understand that a diverse workforce will embody different perspectives and approaches to work Managers must recognize learning opportunities and challenges

Organizational culture must create an expectation of high standards of performance and ethics Organizational culture must stimulate personal development Organizational culture must encourage openness 164 SOCIALIZATION OF NEW EMPLOYEES Organizational socialization is the systematic process by which an organization brings new employees into its culture. Steps in socialization

Careful selection Challenging early work assignments Training to develop capabilities with culture Rewards that sustain culture Adoption of cultural value policies Ritual, taboos, rites and stories to reinforce culture Role model to sustain culture 165

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